NIFTY ON 19-08-2022
Amid weak global cues , Selling pressure in all the indices was observed and NIFTY continued to correct further and breached the crucial level of 17700-500. BANK, IT, AUTO, METAL all dragged the NIFTY below 17700 and bulls were compelled to leave the long positions.
Consequently, NIFTY closed at 17490.70 losing 1.51%.
Technical View : (Daily Chart)
NIFTY has made a strong Bearish candle which indicates that there are high chances of further correction in the Index.
NIFTY is moving above EMA 13, 21, 34 and EMA 34< EMA21<EMA13 which can be interpreted as the short-term trend is in the positive territory which is intact.
RSI has cooled off to 60.44 from 72.42 level which indicates that NIFTY is technically out of overbought zone now and a recovery may be observed during today’s session.
Support and Resistance : Daily Chart
17350-17246 will work as the strong support levels for NIFTY.
On the upper side NIFTY will face resistance in the range of 17562-17659.
View for Traders:
It may not be not wise to sell NIFTY at current levels as there are chances that NIFTY may recover from the level of 1750-300. The conclusion has been withdrawn on the basis of following facts;
I. RSI has cooled off and technically Index is out of overbought zone.
II. The Fibonacci retracement indicates that Nifty may take support near 17300. Also BANK NIFTY may take support near 38000.
III. It is remarkable how Heavyweight Reliance has held its position near important support level of 2600 and there are high chances that buying will come in this stock at current levels which will further support the Index.
Hence, in my view traders must look for buying opportunities during today’s session.
Hence, NIFTY may be bought in the range of 17300-17250 for a target of 17500-550. SL may be put below 17200 on closing basis.
Again, Sellers may take their chances in either of the two ways:
I. Sell NIFTY in the range of 17600-650 for a target of 17500. SL may be put above 17700 on closing basis.
II. Sell NIFTY if Index breaches 17200. In this case the target will 17000-16900. SL may be put above 17250 on closing basis.
Intraday Picks:
1. RELIANCE INDUSTRIES LIMITED
BUY IN THE RANGE OF 2615-2618
TARGET 2641
SL 2600
2. COLPAL
BUY IN THE TANGE OF 1592-1595
TARGET 1615
SL 1577
Amid weak global cues , Selling pressure in all the indices was observed and NIFTY continued to correct further and breached the crucial level of 17700-500. BANK, IT, AUTO, METAL all dragged the NIFTY below 17700 and bulls were compelled to leave the long positions.
Consequently, NIFTY closed at 17490.70 losing 1.51%.
Technical View : (Daily Chart)
NIFTY has made a strong Bearish candle which indicates that there are high chances of further correction in the Index.
NIFTY is moving above EMA 13, 21, 34 and EMA 34< EMA21<EMA13 which can be interpreted as the short-term trend is in the positive territory which is intact.
RSI has cooled off to 60.44 from 72.42 level which indicates that NIFTY is technically out of overbought zone now and a recovery may be observed during today’s session.
Support and Resistance : Daily Chart
17350-17246 will work as the strong support levels for NIFTY.
On the upper side NIFTY will face resistance in the range of 17562-17659.
View for Traders:
It may not be not wise to sell NIFTY at current levels as there are chances that NIFTY may recover from the level of 1750-300. The conclusion has been withdrawn on the basis of following facts;
I. RSI has cooled off and technically Index is out of overbought zone.
II. The Fibonacci retracement indicates that Nifty may take support near 17300. Also BANK NIFTY may take support near 38000.
III. It is remarkable how Heavyweight Reliance has held its position near important support level of 2600 and there are high chances that buying will come in this stock at current levels which will further support the Index.
Hence, in my view traders must look for buying opportunities during today’s session.
Hence, NIFTY may be bought in the range of 17300-17250 for a target of 17500-550. SL may be put below 17200 on closing basis.
Again, Sellers may take their chances in either of the two ways:
I. Sell NIFTY in the range of 17600-650 for a target of 17500. SL may be put above 17700 on closing basis.
II. Sell NIFTY if Index breaches 17200. In this case the target will 17000-16900. SL may be put above 17250 on closing basis.
Intraday Picks:
1. RELIANCE INDUSTRIES LIMITED
BUY IN THE RANGE OF 2615-2618
TARGET 2641
SL 2600
2. COLPAL
BUY IN THE TANGE OF 1592-1595
TARGET 1615
SL 1577
Comment:
TARGET HIT RIL.